1. What is Realtor Commission?

Realtor commission is the fee paid to real estate agents for their services in facilitating a property sale. It's typically a percentage of the final sale price and is usually split between the buyer's and seller's agents.

2. How Commission is Calculated

The calculator uses the standard commission formula:

Where:

• \( Sale\ Price \) — Final selling price of the property
• \( Commission\ Rate \) — Agreed percentage rate (typically 1-6%)

Example: For a $500,000 home at 2.5% commission rate, the calculation would be $500,000 × 0.025 = $12,500 commission.

3. Understanding Commission Rates

Details: Commission rates vary by market, property type, and negotiation. Typical rates range from 1% to 6%, with 2.5-3% per agent being common in many markets.

4. Using the Calculator

Tips: Enter the sale price of the property and the agreed commission rate. The calculator will show the total commission amount based on these inputs.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates negotiable?
A: Yes, commission rates are always negotiable between the seller and the real estate agent or brokerage.

Q2: Who pays the realtor commission?
A: Typically the seller pays the commission, which is then split between the buyer's and seller's agents.

Q3: What's included in the commission?
A: Commission covers agent services including marketing, showings, negotiations, paperwork, and closing coordination.

Q4: Are there alternatives to percentage commissions?
A: Some brokers offer flat-fee or tiered commission structures, especially for higher-priced properties.

Q5: How is commission split between agents?
A: The total commission is typically split evenly between listing and buyer's agents, but this can vary.